Defensive strategies are used by incumbent firms to discourage potential competitors from entering their industry. There are pre-entry strategies like signaling and fortifying defenses, as well as post-entry strategies. Signaling involves announcing the intent to retaliate against any competitor attacks. Fortifying defenses strengthens barriers to entry through economies of scale, product differentiation, and proprietary advantages. Post-entry strategies include continuous improvement to stay ahead of competitors, capacity expansion to utilize excess capacity, and introducing fighting brands to combat threats to the core brand.
A brand value chain is a structured approach to assessing the sources and outcomes of brand equity and the manner by which marketing activities create brand value.
Strategic Business Unit Defined
A strategic business unit is a fully functional and distinct unit of a business that develops its own strategic vision and direction.
A brand value chain is a structured approach to assessing the sources and outcomes of brand equity and the manner by which marketing activities create brand value.
Strategic Business Unit Defined
A strategic business unit is a fully functional and distinct unit of a business that develops its own strategic vision and direction.
This is book review on 'MARKETING WARFARE', a Marketing Bestseller by Al Ries and Jack Trout the duo authors of book 'Positioning'. This book explains how 'Marketing is also a war played on the battlefield of 'Customer's minds'.
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Overview of the process for strategic and tactical execution of brand building. Somewhat centered on a services and ";OpCo" layered organization, so while the vocabulary may change, the process is largely intact.
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"Marketing Strategy is a long term plan for achieving a company’s goals by understanding the needs of customers and creating a distinct and sustainable competitive advantage.”
Goals indicate what a business unit wants to achieve, strategy is a game plan for getting there.
How to beat the competition with smart market positioning
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[Note: This is a partial preview. To download this presentation, visit:
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Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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2. Introduction
• Competition forces companies to constantly
engage in offensive and defensive marketing
strategies.
• Rivalry occurs because one or more competitors
either feels the pressure or sees an opportunity
to enter an industry or to improve its position
within an industry.
• Companies respond to competitor challenges by
counterattacking with increasing advertising
expenditures, cutting prices, increasing
innovation, and introducing new products.
3. Defensive Strategies
• The purpose of DS is to make a possible attack
unattractive and discourage potential challengers from
attacking another firm.
• Incumbents try to shape the challenger’s expectations
about the industry’s profitability and convince them
that the return on their investment will be so low.
• Incumbent needs to take timely action to discourage a
challenger from making any substantial commitment.
• Marketing managers and business strategists have
developed a number of defensive marketing strategies.
4. Defensive
Strategies
Pre-entry Post-entry
strategies strategies
Fortify and Cover all Continuous Capacity Defend
Signaling Engage
Defend bases improvement expansion position Introduce
before fighting in cross-
entrant brands
becomes
parry
established
5. Signaling
• Companies often use signaling to announce their
intention to take an action.
• Announcements can be made through interviews
with the press, press releases, speeches, trade
journals, newspapers, and other means.
• A defending firm can effectively keep potential
entrants out of the industry by using the threat of
retaliation.
• The higher the perceived probability of retaliation
and its degree of severity, the lower the
probability of attack by a challenger.
6. Fortify and Defend
• Higher the profits earned by incumbent firms, the higher
the motivation to enter.
• The inducement to attack can be lowered by reducing the
profit expectations of the entrant.
• The most common barriers to entry include:
Economies of scale
Product differentiation
Capital requirements
Switching costs
Experience curve cost reductions
Proprietary technology or patents
Access to raw materials and other inputs
Access to distribution channels
Location
7. Cover All Bases
• It involve introducing multiple versions of a
product in terms of models or product types.
• Many firms carry full product lines to block
access to the industry by new entrants.
• This strategy is also used by chain stores when
they rush to expand rapidly and keep
competitors out of the market.
8. Continuous Improvement
• A continuous improvement strategy calls for a
relentless pursuit of improvements in
Costs
Product quality
New product development
Manufacturing processes
Distribution
• Through a continuous improvement
strategy, firms try to stay one step ahead of their
competitors and help protect their competitive
position from hostile challengers.
9. Capacity Expansion
• Manufacturing firms may build excess capacity
as an entry deterrent strategy.
• When a potential entrant realizes that the
industry has excess capacity and its own entry
will only add to the volume of unutilized
industry capacity, it will be reluctant to enter.
• Capacity expansion is a credible deterrent
strategy if capacity costs are very high.
10. Defend Position Before Entrant
Becomes Established
• Upstarts are especially dangerous if they enter
the market by breaking the rules of the game
with radically new products, or innovations in
pricing, distribution, delivery, service, and
positioning.
• Incumbents often defend themselves by
embracing and improving the intruder's
technology, attacking the upstart’s reputation as
a product reliable source of supply, and hiring
some of the best people of the attacking firm.
11. Introduce Fighting Brands
• Introduced by organizations to fight a
competitor’s brand that threatens one of their
major brands.
• Competing brands are typically lower priced
versions of the firm’s premium brands that claim
equal quality at a much lower price.
• It can be an appealing strategy because they help
fight off a price-cutting brand that is threatening
the core brand of the firm while preserving its
premium image and profit margins.
12. Engage in Cross-Parry
• The degree of multimarket contact between two firms
affects the intensity of rivalry and the extent of retaliation
amongst these firms.
• Competitors interacting in multiple markets are less
motivated to compete aggressively because of the
possibility of retaliation across various markets.
• Competitors have an incentive to cooperate since they
stand to gain if they allow their rivals to dominate certain
markets in exchange for similar treatment in the markets in
which they are dominant.
• Cross-parry is used when a firm that is challenged by a
competitor in one area chooses to challenge this
competitor in another area.